Saudi Citizen and Yemeni Resident Convicted for Concealing Perfume Trade Activities
The Ministry of Commerce has taken action against a Saudi national and a Yemeni resident for commercial concealment in Riyadh's perfume trade.
In a significant case of commercial fraud, the Ministry of Commerce in Saudi Arabia has publicly named and shamed a Saudi citizen and a Yemeni resident for their involvement in a scheme to conceal the trade of perfumes and cosmetics in the capital city, Riyadh.
According to official findings, the Saudi individual facilitated business operations for the Yemeni national without ensuring that he possessed the requisite foreign investment license.The Ministry's investigation led to the confiscation of substantial sums of money in multiple foreign currencies as well as gold bars.
This evidence corroborated claims that the Yemeni resident was unlawfully operating a commercial enterprise beyond the scope of his official role as a sales representative.
Financial transactions were identified which demonstrated that he received 20% of the annual net profits, ostensibly for enabling the Saudi citizen to conceal their business activities.Following an adjudication process, the Criminal Court in Riyadh issued a comprehensive judgment against both parties.
The court ordered a joint fine totaling SR60,000, revoked the commercial registration of the enterprise, canceled its business license, mandated the liquidation of the business, and required them to pay any due taxes, zakat (obligatory charity), and fees.As part of their punishment, both individuals have been permanently barred from engaging in any commercial activities within Saudi Arabia.
The Yemeni national faces deportation and is subject to a lifelong ban on working within the Kingdom's borders.The implicated Anti-Concealment Law delineates potential penalties for such offenses, which include up to five years' imprisonment, fines as high as SR5 million, and the seizure of illicitly acquired assets following the finalization of judicial proceedings.
The incident highlights the authorities' commitment to enforcing regulatory compliance within Saudi Arabia's business sector.
According to official findings, the Saudi individual facilitated business operations for the Yemeni national without ensuring that he possessed the requisite foreign investment license.The Ministry's investigation led to the confiscation of substantial sums of money in multiple foreign currencies as well as gold bars.
This evidence corroborated claims that the Yemeni resident was unlawfully operating a commercial enterprise beyond the scope of his official role as a sales representative.
Financial transactions were identified which demonstrated that he received 20% of the annual net profits, ostensibly for enabling the Saudi citizen to conceal their business activities.Following an adjudication process, the Criminal Court in Riyadh issued a comprehensive judgment against both parties.
The court ordered a joint fine totaling SR60,000, revoked the commercial registration of the enterprise, canceled its business license, mandated the liquidation of the business, and required them to pay any due taxes, zakat (obligatory charity), and fees.As part of their punishment, both individuals have been permanently barred from engaging in any commercial activities within Saudi Arabia.
The Yemeni national faces deportation and is subject to a lifelong ban on working within the Kingdom's borders.The implicated Anti-Concealment Law delineates potential penalties for such offenses, which include up to five years' imprisonment, fines as high as SR5 million, and the seizure of illicitly acquired assets following the finalization of judicial proceedings.
The incident highlights the authorities' commitment to enforcing regulatory compliance within Saudi Arabia's business sector.
